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POOLING AND SERVICING AGREEMENT

Pooling and Servicing Agreement

POOLING AND SERVICING AGREEMENT | Document Parties: WASHINGTON MUTUAL MORTGAGE PASS-THROUGH CERTIFICATES, WMALT | WASHINGTON MUTUAL BANK, | LASALLE BANK NATIONAL ASSOCIATION, | CHRISTIANA BANK & TRUST COMPANY, You are currently viewing:
This Pooling and Servicing Agreement involves

WASHINGTON MUTUAL MORTGAGE PASS-THROUGH CERTIFICATES, WMALT | WASHINGTON MUTUAL BANK, | LASALLE BANK NATIONAL ASSOCIATION, | CHRISTIANA BANK & TRUST COMPANY,

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Title: POOLING AND SERVICING AGREEMENT
Governing Law: Delaware     Date: 11/13/2006

POOLING AND SERVICING AGREEMENT, Parties: washington mutual mortgage pass-through certificates  wmalt , washington mutual bank  , lasalle bank national association  , christiana bank & trust company
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EXHIBIT 4.1

EXECUTION VERSION

 

WaMu ASSET ACCEPTANCE CORP.,

as Depositor

and

WASHINGTON MUTUAL BANK,

as Servicer

and

LASALLE BANK NATIONAL ASSOCIATION,

as Trustee

and

CHRISTIANA BANK & TRUST COMPANY,

as Delaware Trustee

POOLING AND SERVICING AGREEMENT

$1,112,318,951.00

Washington Mutual Mortgage Pass-Through Certificates WMALT Series 2006-AR9 Trust

WaMu Asset Acceptance Corp.

Washington Mutual Mortgage Pass-Through Certificates

WMALT Series 2006-AR9

Cut-Off Date: October 1, 2006


 



TABLE OF CONTENTS

 

Page

ARTICLE I

9

Section 1.01.Definitions

9

Adjusted Cap Rate

9

Adjusted Loan Group 1 Weighted Average Pass-Through Rate

10

Adjusted Loan Group 2 Weighted Average Pass-Through Rate

10

Aggregate Certificate Principal Balance

10

Aggregate Class CX Weighted Average Certificate Interest Rate

10

Aggregate Loan Groups 1 & 2 Balance

10

Aggregate Weighted Average Pass-Through Rate

10

Agreement

10

Appraised Value

10

Assigned Prepayment Premiums

11

Assignment of Proprietary Lease

11

Authenticating Agent

11

Authorized Denomination

11

Balloon Loan

11

Bankruptcy Loss

11

Beneficial Holder

11

Benefit Plan Opinion

11

Book-Entry Certificates

12

Business Day

12

Buydown Agreement

12

Buydown Fund

12

Buydown Fund Account

12

Buydown Loan

12

Carry-Forward Subsequent Recoveries Amount

12

Carryover Shortfall Amount

13

Carryover Shortfall Payment

13

Certificate

16

Certificate Account

16

Certificateholder or Holder

17

Certificate Interest Rate

17

Certificate Margin

17

Certificate of Trust

17

Certificate Principal Balance

17

Certificate Register and Certificate Registrar

17

Class

17

Class 1A Certificates

18

Class 1A-L Regular Interest

18

Class 2A Certificates

18

Class 2A-L Regular Interest

18

Class A Certificates

18

Class A-L Regular Interests

19

Class B-1 Certificates

19

Class B-1-L Regular Interest

19

Class B-2 Certificates

19

Class B-2-L Regular Interest

19

Class B-3 Certificates

19

Class B-3-L Regular Interest

19

Class B-4 Certificates

19

Class B-4-L Regular Interest

19

Class B-5 Certificates

19

Class B-5-L Regular Interest

19

Class B-6 Certificates

19

Class B-6-L Regular Interest

19

Class B-7 Certificates

19

Class B-7-L Regular Interest

20

Class B-8 Certificates

20

Class B-8-L Regular Interest

20

Class B-9 Certificates

20

Class B-9-L Regular Interest

20

Class B-10 Certificates

20

Class B-10-L Regular Interest

20

Class B-11 Certificates

20

Class B-11-L Regular Interest

20

Class B-12 Certificates

20

Class B-12-L Regular Interest

20

Class B-13 Certificates

20

Class B-13-L Regular Interest

20

Class B-14 Certificates

20

Class B-14-L Regular Interest

21

Class CA Group 1 Component

21

Class CA Group 2 Component

21

Class CA-1B Certificates

21

Class CA-1B Component

21

Class CA-1B Group 1 Component

21

Class CA-1B Group 2 Component

21

Class CA-1B-L Regular Interest

21

Class CA-1C Certificates

21

Class CA-1C Component

21

Class CA-1C Group 1 Component

21

Class CA-1C Group 2 Component

21

Class CA-1C-L Regular Interest

21

Class CX-1 Accrued Interest

21

Class CX-1 Certificates

23

Class CX-1 Subgroup 1-A IO Component

23

Class CX-1 Subgroup 1-A PO Component

23

Class CX-1 Subgroup 2-A IO Component

23

Class CX-1 Subgroup 2-A PO Component

23

Class CX-1-L Notional Amount

23

Class CX-1-L Regular Interest

23

Class CX-2-PPP Accrued Interest

23

Class CX-2-PPP Certificates

24

Class CX-2-PPP Subgroup 1-B IO Component

24

Class CX-2-PPP Subgroup 1-B PO Component

24

Class CX-2-PPP Subgroup 2-B IO Component

24

Class CX-2-PPP Subgroup 2-B PO Component

25

Class CX-2-PPP-L Notional Amount

25

Class CX-2-PPP-L Regular Interest

25

Class II-LT Principal Reduction Amounts

25

Class II-LT Regular Interests

25

Class II-LT1 Regular Interest

25

Class II-LT2 Principal Distribution Amount

25

Class II-LT2 Regular Interest

25

Class II-LT3 Principal Distribution Amount

25

Class II-LT3 Regular Interest

25

Class II-LT4 Principal Distribution Amount

25

Class II-LT4 Regular Interest

26

Class II-LT6 Principal Distribution Amount

26

Class II-LT6 Regular Interest

26

Class II-LT7 Principal Distribution Amount

26

Class II-LT7 Regular Interest

26

Class II-LT8 Principal Distribution Amount

26

Class II-LT8 Regular Interest

26

Class II-LTY1 Principal Distribution Amount

26

Class II-LTY1 Regular Interest

26

Class II-LTY2 Principal Distribution Amount

26

Class II-LTY2 Regular Interest

26

Class Notional Amount

26

Class Principal Balance

27

Class R Certificates

28

Class R Residual Interests

28

Class R-1 Residual Interest

28

Class R-2 Residual Interest

28

Class R-3 Residual Interest

28

Class X Certificates

28

Class X IO Component

28

Class X PO Component

28

Class X-L Regular Interests

28

Class Y Regular Interests

28

Class Y-1 Regular Interest

29

Class Y-1 Principal Distribution Amount

29

Class Y-2 Regular Interest

29

Class Y-2 Principal Distribution Amount

29

Class Y Principal Reduction Amounts

29

Class Z Regular Interests

29

Class Z Principal Reduction Amounts

29

Class Z-1 Regular Interest

29

Class Z-1 Principal Distribution Amount

29

Class Z-2 Regular Interest

29

Class Z-2 Principal Distribution Amount

30

Clean-Up Call Option Date

30

Clean-Up Call Percentage

30

Clearing Agency

30

Closing Date

30

Code

30

COFI

30

Commission

30

Company

30

Complying Insurance Company

30

Component

30

Component Principal Balance

30

Cooperative

31

Cooperative Apartment

31

Cooperative Lease

31

Cooperative Loans

31

Cooperative Stock

31

Cooperative Stock Certificate

32

Corporate Trust Office

32

Corporation

32

Corresponding Class

32

Countrywide

32

Countrywide Agreement

32

Countrywide Compensating Interest

32

Countrywide Custodial Account

33

Countrywide Loans

33

Countrywide Servicing Addendum

33

Countrywide Servicing Fee

33

Credit Support Depletion Date

33

Cumulative Carry-Forward Subsequent Recoveries Amount

33

Current Loan-to-Value Ratio

33

Curtailment

33

Curtailment Shortfall

33

Custodial Account for P&I

33

Custodial Agreement

34

Custodian

34

Cut-Off Date

34

Definitive Certificates

34

Delaware Trustee

34

Depositary Agreement

34

Destroyed Mortgage Note

34

Determination Date

34

Disqualified Organization

34

Distribution Date

34

DTC

35

DTC Participant

35

Due Date

35

Eligible Institution

35

Eligible Investments

35

ERISA

36

ERISA Restricted Certificate

36

ERISA Super Restricted Certificate

36

Event of Default

36

Excess Liquidation Proceeds

37

Excess Subsequent Recoveries

37

Fannie Mae

37

FDIC

37

FHA

37

Final Maturity Date

37

Fitch

37

Freddie Mac

37

Group 1 Loans

37

Group 1 Senior Liquidation Amount

37

Group 1 Senior Percentage

37

Group 1 Senior Prepayment Percentage or Group 2 Senior Prepayment Percentage

37

Group 1 Senior Principal Distribution Amount

40

Group 1 Subordinate Balance

40

Group 1 Subordinate Percentage

40

Group 1 Subordinate Prepayment Percentage

40

Group 1 Weighted Average Certificate Interest Rate

41

Group 2 Loans

41

Group 2 Senior Liquidation Amount

41

Group 2 Senior Percentage

41

Group 2 Senior Prepayment Percentage

41

Group 2 Senior Principal Distribution Amount

41

Group 2 Subordinate Balance

41

Group 2 Subordinate Percentage

42

Group 2 Subordinate Prepayment Percentage

42

Group 2 Weighted Average Certificate Interest Rate

42

Group B Certificates

42

Group B Percentage

42

Group B Subordinate Liquidation Amount

42

Group B Subordinate Principal Distribution Amount

42

Group B Subordinate Principal Prepayments Distribution Amount

43

Group B Weighted Average Pass-Through Rate

43

Group B-L Regular Interests

43

Index

43

Indirect DTC Participants

44

Initial Group 1 Servicing Fee Shortfall Deposit

44

Initial Group 2 Servicing Fee Shortfall Deposit

44

Insurance Proceeds

44

Interest Distribution Amount

44

Interest Rate Adjustment Date

45

Interest Transfer Amount

45

Interest Transfer Amount Fraction

45

Investment Account

45

Investment Depository

45

Junior Subordinate Certificates

45

Last Scheduled Distribution Date

45

Lender PMI Loan

46

LIBOR

46

LIBOR Determination Date

46

Liquidated Mortgage Loan

46

Liquidation Principal

46

Liquidation Proceeds

46

Loan Group

46

Loan Group 1

46

Loan Group 1 Balance

46

Loan Group 1 Maximum Class CX Interest Amount

46

Loan Group 1 Weighted Average Pass-Through Rate

47

Loan Group 2

47

Loan Group 2 Balance

47

Loan Group 2 Maximum Class CX Interest Amount

47

Loan Group 2 Weighted Average Pass-Through Rate

48

Lowest Class B Owner

48

Marker Rate

48

Maximum Class CX Interest Amount

48

Maximum Group B Rate

49

Maximum Loan Group 1 Rate

49

Maximum Loan Group 2 Rate

49

Maximum Loan Group Rate

49

MERS

49

MERS Loan

49

MERS® System

49

MIN

49

Minimum Monthly Payment

49

MOM Loan

50

Monthly P&I Advance

50

Monthly Payment Adjustment Terms

50

Moody’s

50

Mortgage

50

Mortgage File

50

Mortgage Interest Rate

53

Mortgage Loan Margin

53

Mortgage Loan Purchase Agreement

53

Mortgage Loan Schedule

53

Mortgage Loans

54

Mortgage Note

54

Mortgage Pool

54

Mortgage Pool Assets

54

Mortgaged Property

54

Mortgagor

54

Negative Amortization Amount

54

Net Negative Amortization Amount

55

No-Delay Accrual Period

57

Nonrecoverable WMB Advance

57

Non-U.S. Person

58

Notice Addresses

58

Officer’s Certificate

58

One-Month LIBOR

58

One-Year MTA

58

Opinion of Counsel

58

Original Trust Agreement

58

OTS

58

Overcollateralization Amount

58

Overcollateralized Group

59

Ownership Interest

59

Pass-Through Entity

59

Pass-Through Rate

59

Paying Agent

59

Payoff

59

Payoff Earnings

59

Payoff Interest

60

Payoff Period

60

Percentage Interest

60

Permitted Transferee

60

Person

61

Plan Investor

61

Prepaid Monthly Payment

61

Prepayment Premium

61

Primary Insurance Policy

61

Principal Balance

61

Principal Payment

62

Principal Payment Amount

62

Principal Prepayment

62

Principal Prepayment Amount

62

Principal Transfer Amount

62

Prior Period

63

Prospectus

63

Rate Ceiling

63

Rate Floor

63

Rating Agency

63

Ratings

63

Reacquired Mortgage Loan

63

Realized Loss

63

Recognition Agreement

67

Record Date

67

Recording Documents

67

Reference Banks

68

Regular Interests

68

Regulation AB

68

Relief Act Shortfall

68

REMIC

68

REMIC Provisions

68

REMIC I

68

REMIC I Assets

68

REMIC I Available Distribution Amount

68

REMIC I Distribution Amount

69

REMIC I Regular Interests

71

REMIC II

71

REMIC II Assets

71

REMIC II Available Distribution Amount

71

REMIC II Distribution Amount

71

REMIC II Principal Distribution Amount

72

REMIC II Regular Interests

72

REMIC III

72

REMIC III Assets

72

REMIC III Available Distribution Amount

72

REMIC III Distribution Amount

72

REMIC III Regular Interests

81

Repurchase Price

81

Repurchase Proceeds

82

Residual Certificates

82

Residual Distribution Amount

82

Responsible Officer

82

ROV Mortgage Loan

82

S&P

82

Secretary of State

83

Securities Act

83

Security Agreement

83

Seller

83

Senior Certificates

83

Senior Subordinate Certificates

83

Servicer

83

Servicer Business Day

83

Servicing Fee Rate

83

Servicing Officer

83

Special Primary Insurance Policy

83

Special Primary Insurance Premium

83

Statutory Trust Statute

83

Streamlined Mortgage Loan

83

Subgroup

83

Subgroup Balance

84

Subgroup Fraction

84

Subgroup Weighted Average Pass-Through Rate

84

Subgroup 1-A

84

Subgroup 1-A Balance

84

Subgroup 1-A Mortgage Loans

85

Subgroup 1-A Weighted Average Pass-Through Rate

85

Subgroup 1-B

85

Subgroup 1-B Balance

85

Subgroup 1-B Mortgage Loans

85

Subgroup 1-B Weighted Average Pass-Through Rate

85

Subgroup 2-A

85

Subgroup 2-A Balance

85

Subgroup 2-A Mortgage Loans

85

Subgroup 2-A Weighted Average Pass-Through Rate

85

Subgroup 2-B

86

Subgroup 2-B Balance

86

Subgroup 2-B Mortgage Loans

86

Subgroup 2-B Weighted Average Pass-Through Rate

86

Subordinate Certificates

86

Subordinate Component Balance

86

Subordinate Percentage

86

Subordination Level

86

Subsequent Recoveries

86

Substitute Mortgage Loan

87

Substitution Price

87

Tax Matters Person

87

Termination Date

87

Termination Payment

87

Total Transfer Amount

87

Transfer

87

Transfer Rate

88

Transferee

88

Transferee Affidavit and Agreement

88

Trust

88

Trustee

88

UC Rate

88

Unadjusted Net Negative Amortization Amount

88

Uncollected Interest

88

Uncompensated Interest Shortfall

88

Undercollateralized Group

89

Underwriter

89

Uninsured Cause

90

U.S. Person

90

VA

90

Withdrawal Date

90

WMB Compensating Interest

90

WMB Loans

90

WMB Servicing Fee

90

ARTICLE II  Creation of the Trust; Conveyance of the Mortgage Pool Assets, REMIC I Regular Interests, REMIC II Regular Interests and REMIC III Regular Interests; REMIC Election and Designations; Original Issuance of Certificates

90

Section 2.01.Creation of the Trust

90

Section 2.02.Restrictions on Activities of the Trust

92

Section 2.03.Separateness Requirements

92

Section 2.04.Conveyance of Mortgage Pool Assets; Assignment of Countrywide Agreement; Security Interest

94

Section 2.05.Delivery of Mortgage Files

95

Section 2.06.REMIC Election for REMIC I

96

Section 2.07.Acceptance by Trustee

97

Section 2.08.Representation and Warranty of the Company Concerning the Mortgage Loans

98

Section 2.09.Representations and Warranties of the Seller Concerning the Mortgage Loans

100

Section 2.10.Additional Provisions Relating to Repurchases of and Substitutions for Mortgage Loans by the Company or the Seller

101

Section 2.11.Acknowledgment of Transfer of Mortgage Pool Assets

102

Section 2.12.Conveyance of REMIC II Assets; Security Interest

102

Section 2.13.REMIC Election for REMIC II

103

Section 2.14.Acknowledgement of Transfer of REMIC II Assets

104

Section 2.15.Conveyance of REMIC III Assets; Security Interest

104

Section 2.16.REMIC Election for REMIC III

105

Section 2.17.Acknowledgement of Transfer of REMIC III Assets

107

Section 2.18.Conveyance of REMIC III Regular Interests; Security Interest

107

Section 2.19.Acknowledgement of Transfer of REMIC III Regular Interests

108

Section 2.20.Legal Title

108

Section 2.21.Compliance with ERISA Requirements

108

Section 2.22.Additional Representation Concerning the Mortgage Loans

108

Section 2.23.Distributions to Certificates Outside of REMIC III

108

ARTICLE III  Administration and Servicing of Mortgage Loans

109

Section 3.01.The Servicer

109

Section 3.02.The Custodial Accounts for P&I and Buydown Fund Accounts

112

Section 3.03.The Investment Account; Eligible Investments

113

Section 3.04.The Certificate Account

113

Section 3.05.Permitted Withdrawals from the Certificate Account, the Investment Account, the Custodial Accounts for P&I and the Buydown Fund Accounts

114

Section 3.06.Maintenance of Primary Insurance Policies; Collections Thereunder

116

Section 3.07.Maintenance of Hazard Insurance

117

Section 3.08.Enforcement of Due-on-Sale Clauses; Assumption Agreements

117

Section 3.09.Realization Upon Defaulted Mortgage Loans

118

Section 3.10.Trustee to Cooperate; Release of Mortgage Files

120

Section 3.11.Compensation to the Servicer

121

Section 3.12.[Reserved.]

121

Section 3.13.Reports on Assessment of Compliance with Servicing Criteria and Servicing Compliance Statements

121

Section 3.14.Access to Certain Documentation and Information Regarding the Mortgage Loans

122

Section 3.15.[Reserved.]

123

Section 3.16.[Reserved.]

123

Section 3.17.[Reserved.]

123

Section 3.18.[Reserved.]

123

Section 3.19.Determination of LIBOR by Servicer

123

Section 3.20.Assigned Prepayment Premiums

124

Section 3.21.Additional Servicer Covenants

126

ARTICLE IV  Payments to Certificateholders; Payment of Expenses

126

Section 4.01.Distributions to Holders of REMIC I Regular Interests and Class R-1 Residual Interest

126

Section 4.02.Monthly P&I Advances; Distribution Reports to the Trustee

127

Section 4.03.Nonrecoverable WMB Advances

129

Section 4.04.Distributions to Holders of REMIC II Regular Interests and Class R-2 Residual Interest

129

Section 4.05.Distributions to Certificateholders; Payment of Special Primary Insurance Premiums

129

Section 4.06.Statements to Certificateholders

131

ARTICLE V  The Certificates

131

Section 5.01.The Certificates

131

Section 5.02.Certificates Issuable in Classes; Distributions of Principal and Interest; Authorized Denominations

138

Section 5.03.Registration of Transfer and Exchange of Certificates

138

Section 5.04.Mutilated, Destroyed, Lost or Stolen Certificates

139

Section 5.05.Persons Deemed Owners

139

Section 5.06.[Reserved.]

140

Section 5.07.Book-Entry for Book-Entry Certificates

140

Section 5.08.Notices to Clearing Agency

141

Section 5.09.Definitive Certificates

141

Section 5.10.Office for Transfer of Certificates

141

Section 5.11.Nature of Certificates

141

ARTICLE VI  The Company and the Servicer

142

Section 6.01.Liability of the Company and the Servicer

142

Section 6.02.Merger or Consolidation of the Company or the Servicer

142

Section 6.03.Limitation on Liability of the Company, the Servicer and Others

142

Section 6.04.Neither the Company nor the Servicer May Resign

143

Section 6.05.Trustee Access

143

ARTICLE VII  Default

143

Section 7.01.Events of Default

143

Section 7.02.Trustee to Act; Appointment of Successor

146

Section 7.03.Notification to Certificateholders

148

ARTICLE VIII  Concerning the Trustees

149

Section 8.01.Duties of Trustees

149

Section 8.02.Certain Matters Affecting the Trustees

150

Section 8.03.Trustees Not Liable for Certificates or Mortgage Loans

151

Section 8.04.Trustees May Own Certificates

152

Section 8.05.The Servicer to Pay Trustees’ Fees and Expenses

152

Section 8.06.Eligibility Requirements for Trustees

152

Section 8.07.Resignation and Removal of Trustees

153

Section 8.08.Successor Trustee

153

Section 8.09.Merger or Consolidation of Trustee

154

Section 8.10.Appointment of Co-Trustee or Separate Trustee

154

Section 8.11.Authenticating Agents

155

Section 8.12.Paying Agents

156

Section 8.13.Duties of Delaware Trustee

157

Section 8.14.Amendment to Certificate of Trust

157

Section 8.15.[Reserved.]

157

Section 8.16.Trustees Act on Behalf of Trust

157

Section 8.17.Limitation of Liability

157

Section 8.18.Trustee Report on Assessment of Compliance with Servicing Criteria

157

ARTICLE IX  Termination

158

Section 9.01.Termination Upon Purchase by the Servicer or Liquidation of All Mortgage Loans

158

Section 9.02.Additional Termination Requirements

160

Section 9.03.Trust Irrevocable

161

ARTICLE X  Miscellaneous Provisions

161

Section 10.01.Amendment

161

Section 10.02.Recordation of Agreement

163

Section 10.03.Limitation on Rights of Certificateholders

163

Section 10.04.Access to List of Certificateholders

164

Section 10.05.Governing Law

164

Section 10.06.Notices

165

Section 10.07.Compliance With Regulation AB

165

Section 10.08.Severability of Provisions

165

Section 10.09.Counterpart Signatures

165

Section 10.10.Benefits of Agreement

165

Section 10.11.Notices and Copies to Rating Agencies

165

Section 10.12.Covenant Not to Place Trust Into Bankruptcy

166

Section 10.13.Covenant Not to Place Company Into Bankruptcy

167

 


 

Appendix 1

Definitions of Class Y Principal Reduction Amounts and Class II-LT Principal Reduction Amounts

Exhibit A

Form of Certificates (other than Class R Certificates)

Exhibit B

Form of Class R Certificates

Exhibit C

[Reserved]

Exhibit D

Mortgage Loan Schedule

Exhibit E

[Reserved]

Exhibit F

[Reserved]

Exhibit G

[Reserved]

Exhibit H

Form of Additional Matter Incorporated Into the Certificates

Exhibit I

Transferor Certificate

Exhibit J

Transferee Affidavit And Agreement

Exhibit K

[Reserved]

Exhibit L

Form of Investment Letter

Exhibit M

Form of Trustee’s Certification Pursuant to Section 2.07

Exhibit N

Officer’s Certificate With Respect to ERISA Matters Pursuant to Section 5.01(d)

Exhibit O

Officer’s Certificate With Respect to ERISA Matters Pursuant to Section 5.01(g)

 

 

 


This Pooling and Servicing Agreement, dated as of October 1, 2006 (this “ Agreement ”), is by and among WaMu Asset Acceptance Corp., as depositor (the “ Company ”), Washington Mutual Bank, as Servicer, LaSalle Bank National Association, as Trustee, and Christiana Bank & Trust Company, as Delaware Trustee.  Capitalized terms used in this Agreement and not otherwise defined have the meanings ascribed to such terms in Article I hereof.

PRELIMINARY STATEMENT

The Company at the Closing Date is the owner of the Mortgage Loans and the other property being conveyed by it to the Trust. On the Closing Date, the Company will sell the Mortgage Loans and certain other assets to the Trust in return for the REMIC I Regular Interests and the Class R-1 Residual Interest and will be the owner of the REMIC I Regular Interests and the Class R-1 Residual Interest.  Thereafter, on the Closing Date, the Company will acquire the REMIC II Regular Interests and the Class R-2 Residual Interest from the Trust as consideration for its transfer to the Trust of the REMIC I Regular Interests and will be the owner of the REMIC II Regular Interests and the Class R-2 Residual Interest.  Thereafter, on the Closing Date, the Company will acquire the REMIC III Regular Interests and the Class R-3 Residual Interest from the Trust as consideration for its transfer to the Trust of the REMIC II Regular Interests and will be the owner of the REMIC III Regular Interests and the Class R-3 Residual Interest.  Thereafter, on the Closing Date, the Company will acquire the Certificates from the Trust as consideration for its transfer to the Trust of the REMIC III Regular Interests, and will be the owner of the Certificates. The Company has duly authorized the execution and delivery of this Agreement to provide for (i) the sale to the Trust of the Mortgage Loans and certain other assets, (ii) the issuance to the Company of the REMIC I Regular Interests and the Class R-1 Residual Interest representing in the aggregate the entire beneficial interest in REMIC I, (iii) the conveyance to the Trust of the REMIC I Regular Interests, (iv) the issuance to the Company of the REMIC II Regular Interests and the Class R-2 Residual Interest representing in the aggregate the entire beneficial interest in REMIC II, (v) the conveyance to the Trust of the REMIC II Regular Interests, (vi) the issuance to the Company of the REMIC III Regular Interests and the Class R-3 Residual Interest representing in the aggregate the entire beneficial interest in REMIC III, (vii) the conveyance to the Trust of the REMIC III Regular Interests and (viii) the issuance to the Company of the Certificates. The Company and the Servicer are entering into this Agreement, and the Trustee and the Delaware Trustee are each accepting the trust created hereby, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged.

The Certificates issued hereunder, other than the Junior Subordinate Certificates, have been offered for sale pursuant to a Prospectus, dated January 6, 2006, and a Prospectus Supplement, dated October 24, 2006, of the Company (together, the “ Prospectus ”). The Junior Subordinate Certificates have been offered for sale pursuant to a Private Placement Memorandum, dated October 26, 2006.  The Trust created hereunder is the “Trust” described in the Prospectus and the Private Placement Memorandum and the Certificates are the “Certificates” described therein. The following tables set forth the designation, type of interest, Certificate Interest Rate, initial Class Principal Balance and Final Maturity Date for the REMIC I Regular Interests, the REMIC II Regular Interests, the REMIC III Regular Interests and the Class R Residual Interests:



REMIC I Interests

 

Class Designation for each REMIC I Regular Interest and the Class R-1 Residual Interest

 

Type of Interest

 

Certificate Interest
Rate (1)

 

Initial Class
Principal
Balance

 

Final Maturity
Date*

 

Class Y-1

 

Regular

 

Variable (2)

 

$       191,319.40

 

November 2046

 

Class Y-2

 

Regular

 

Variable (3)

 

364,836.72

 

November 2046

 

Class Z-1

 

Regular

 

Variable (2)

 

382,447,483.88

 

November 2046

 

Class Z-2

 

Regular

 

Variable (3)

 

729,315,211.31

 

November 2046

 

Class R-1†

 

Residual

 

6.925%

 

100.00

 

November 2046

 

 

 

 

 

 

 

 

 

 

*             The Distribution Date in the specified month, which is the month following the month in which the latest maturing Mortgage Loan in the related Loan Group matures. For federal income tax purposes, for each Class of REMIC I Regular and Residual Interests, the “latest possible maturity date” shall be the Final Maturity Date.

 

†              The Class R-1 Residual Interest is entitled to receive the applicable Residual Distribution Amount and any Excess Liquidation Proceeds.

 

(1)           Interest distributed to the REMIC I Regular Interests and the Class R-1 Residual Interest on each Distribution Date will have accrued at the applicable per annum Certificate Interest Rate on the applicable Class Principal Balance outstanding immediately before such Distribution Date.

 

(2)           For each Distribution Date, the Certificate Interest Rate on the Class Y-1 and Class Z-1 Regular Interests shall equal the Loan Group 1 Weighted Average Pass-Through Rate for such Distribution Date.

 

(3)           For each Distribution Date, the Certificate Interest Rate on the Class Y-2 and Class Z-2 Regular Interests shall equal the Loan Group 2 Weighted Average Pass-Through Rate for such Distribution Date.

 

 

 

 

 

 

 

 

 

 

 

 

As provided herein, with respect to REMIC I, the Servicer will cause an election to be made on behalf of REMIC I to be treated for federal income tax purposes as a REMIC. The REMIC I Regular Interests will be designated regular interests in REMIC I and the Class R-1 Residual Interest will be designated the sole class of residual interest in REMIC I, for purposes of the REMIC Provisions.



REMIC II Interests

 

Class Designation for each REMIC II Regular Interest and the Class R-2 Residual Interest

 

Type of Interest

 

Certificate Interest
Rate (1)

 

Initial Class
Principal
Balance

 

Final Maturity
Date*

 

Class II-LTY1

 

Regular

 

Variable (2)

 

$191,319.40

 

November 2046

 

Class II-LTY2

 

Regular

 

Variable (3)

 

364,836.72

 

November 2046

 

Class II-LT1

 

Regular

 

Variable (4)

 

1,111,419,722.13

 

November 2046

 

Class II-LT2

 

Regular

 

Variable (4)

 

55,615.94

 

November 2046

 

Class II-LT3

 

Regular

 

(5)

 

55,615.94

 

November 2046

 

Class II-LT4

 

Regular

 

Variable (6)

 

55,615.94

 

November 2046

 

Class II-LT6

 

Regular

 

Variable (4)

 

46,338.54

 

November 2046

 

Class II-LT7

 

Regular

 

(5)

 

64,893.34

 

November 2046

 

Class II-LT8

 

Regular

 

Variable (6)

 

64,893.34

 

November 2046

 

Class R-2 (7)

 

Residual

 

-----

 

-----  

 

November 2046

 

 

 

 

 

 

 

 

 

 

*             The Distribution Date in the specified month, which is the month following the month in which the latest maturing Mortgage Loan matures.  For federal income tax purposes, for each Class of REMIC II Regular and Residual Interests, the “latest possible maturity date” shall be the Final Maturity Date.

 

(1)           Interest distributed to the REMIC II Regular Interests (other than the Class II-LT3 and Class II-LT7 Regular Interests, which shall not be entitled to receive any distributions of interest) on each Distribution Date will have accrued at the applicable per annum Certificate Interest Rate on the applicable Class Principal Balance outstanding immediately before such Distribution Date.

 

(2)           For each Distribution Date, the Certificate Interest Rate on the Class II-LTY1 Regular Interest shall equal the Loan Group 1 Weighted Average Pass-Through Rate for such Distribution Date.

 

(3)           For each Distribution Date, the Certificate Interest Rate on the Class II-LTY2 Regular Interest shall equal the Loan Group 2 Weighted Average Pass-Through Rate for such Distribution Date.

 

(4)           For each Distribution Date, the Certificate Interest Rate on the Class II-LT1, Class II-LT2 and Class II-LT6 Regular Interests shall equal the weighted average of the Certificate Interest Rates for the Class Z-1 and Class Z-2 Regular Interests.

(5)           The Class II-LT3 and Class II-LT7 Regular Interests shall not be entitled to receive any distributions of interest.

 

(6)           For each Distribution Date, the Certificate Interest Rate on the Class II-LT4 and Class II-LT8 Regular Interests shall equal two (2) times the weighted average of the Certificate Interest Rates for the Class Z-1 and Class Z-2 Regular Interests.

 

(7)           The Class R-2 Residual Interest shall be entitled to receive the applicable Residual Distribution Amount.  The Class R-2 Residual Interest shall not be entitled to receive any distributions of interest or principal.

 

 

 

 

 

 

 

 

 

 

 

 

 

As provided herein, with respect to REMIC II, the Servicer will cause an election to be made on behalf of REMIC II to be treated for federal income tax purposes as a REMIC. The REMIC II Regular Interests will be designated regular interests in REMIC II and the Class R-2 Residual Interest will be designated the sole class of residual interest in REMIC II, for purposes of the REMIC Provisions.



REMIC III Interests

 

Class Designation for each Class of REMIC III Regular Interests and the Class R-3 Residual Interest

 

Type of Interest

 

Certificate Interest
Rate (1)

 

Initial Class
Principal
Balance

 

Final Maturity
Date*

 

 

Class 1A-L

 

Regular

 

Variable (2)(20)

 

$ 270,142,000.00

 

November 2046

 

Class 2A-L

 

Regular

 

Variable (3)(20)

 

515,152,000.00

 

November 2046

 

Class CA-1B-L

 

Regular

 

Variable (4)(20)

 

98,163,000.00 (5)

 

November 2046

 

Class CA-1C-L

 

Regular

 

Variable (6)(20)

 

98,163,000.00 (7)

 

November 2046

 

Class CX-1-L

 

Regular

 

----- (8)(20)

 

0.00 (9)

 

November 2046

 

Class CX-2-PPP-L

 

Regular

 

----- (10)(20)

 

0.00 (9)

 

November 2046

 

Class B-1-L

 

Regular

 

Variable (11)(20)

 

22,247,000.00

 

November 2046

 

Class B-2-L

 

Regular

 

Variable (12)(20)

 

25,027,000.00

 

November 2046

 

Class B-3-L

 

Regular

 

Variable (13)(20)

 

8,342,000.00

 

November 2046

 

Class B-4-L

 

Regular

 

Variable (14)(20)

 

8,342,000.00

 

November 2046

 

Class B-5-L

 

Regular

 

Variable (15)(20)

 

8,342,000.00

 

November 2046

 

Class B-6-L

 

Regular

 

Variable (16)(20)

 

5,561,000.00

 

November 2046

 

Class B-7-L

 

Regular

 

Variable (17)(20)

 

5,561,000.00

 

November 2046

 

Class B-8-L

 

Regular

 

Variable (18)(20)

 

5,561,000.00

 

November 2046

 

Class B-9-L

 

Regular

 

Variable (19)(20)

 

5,561,000.00

 

November 2046

 

Class B-10-L

 

Regular

 

Variable (19)(20)

 

6,117,000.00

 

November 2046

 

Class B-11-L

 

Regular

 

Variable (19)(20)

 

5,561,000.00

 

November 2046

 

Class B-12-L

 

Regular

 

Variable (19)(20)

 

4,449,000.00

 

November 2046

 

Class B-13-L

 

Regular

 

Variable (19)(20)

 

10,010,000.00

 

November 2046

 

Class B-14-L

 

Regular

 

Variable (19)(20)

 

10,017,851.31

 

November 2046

 

Class R-3 (21)

 

Residual

 

-----

 

-----

 

November 2046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*             The Distribution Date in the specified month, which is the month following the month in which the latest maturing Mortgage Loan in the related Loan Group (or Loan Groups, as applicable) matures.  For federal income tax purposes, for each Class of REMIC III Regular and Residual Interests, the “latest possible maturity date” shall be the Final Maturity Date.

 

(1)           Interest distributed to the REMIC III Regular Interests (other than the Class CX-1-L and Class CX-2-PPP-L Regular Interests) on each Distribution Date will have accrued at the applicable per annum Certificate Interest Rate on the applicable Class Principal Balance or Class Notional Amount outstanding immediately before such Distribution Date. Interest distributed to the Class CX-1-L and Class CX-2-PPP-L Regular Interests on each Distribution Date will have accrued in the applicable amount specified in notes (8) and (10) of this table.

 

(2)           The Certificate Interest Rate on the Class 1A-L Regular Interest for each Distribution Date shall equal the lesser of (a) the Loan Group 1 Weighted Average Pass-Through Rate for such Distribution Date and (b) the applicable Index plus 0.83%.

 

(3)           The Certificate Interest Rate on the Class 2A-L Regular Interest for each Distribution Date shall equal the lesser of (a) the Loan Group 2 Weighted Average Pass-Through Rate for such Distribution Date and (b) the applicable Index plus 0.84%.

 

(4)           The Certificate Interest Rate on the Class CA-1B Group 1 Component for each Distribution Date shall equal the lesser of (a) the Loan Group 1 Weighted Average Pass-Through Rate for such Distribution Date and (b) the applicable Index plus 0.84%.

 

                The Certificate Interest Rate on the Class CA-1B Group 2 Component for each Distribution Date shall equal the lesser of (a) the Loan Group 2 Weighted Average Pass-Through Rate for such Dis